SOUTH HADLEY — Voters will have the choice between two Proposition 2-1/2 override amounts on the ballot at the town election in April: $9 million raised incrementally over four years or $11 million raised over five years.
After months of deliberation in town, a Feb. 25 special Town Meeting straw poll and seven months of research from the Budget Task Force, the Select Board approved the tiered question on Tuesday night with two separate votes. Town Administrator Lisa Wong also presented the $64.8 million fiscal year 2027 budget during the nearly four-hour meeting.
Concerned about walking away with no override, four of the five board members opted for a two-tiered question with Andrea Miles dissenting.
“I don’t think it’s about need. I think it’s about what people can do,” Select Board member Renee Sweeney said. “So I just want folks to have a choice.”
In a 3-2 vote, the board decided on the $11 million and $9 million amounts. Board members agreed that $11 million should be on the ballot after the results from special Town Meeting, opinions in emails and public comment showed strong support for the number. However, the board went back and forth between the $6 million and $9 million option for the lower number.
“Town needs $11 million,” resident and former Budget Task Force co-chair Nick Gingras said. “That number is daunting to people. What I think the town really needs more than that number is something, otherwise we go into an incredibly bad situation.”
Miles, Sweeney and Nicole Casolari voted for the $9 million and $11 million option. Citing concerns over affordability and long-term timelines, Select Board Chair Jeff Cyr and member Carol Constant voted against those two numbers.
“Five years is a long time. I don’t know where I’m going to be in five years,” Cyr said. “The levy goes up to $11 million on July 1, it doesn’t leapfrog up there gradually over five years, and then it’s up to both the Select Board, the appropriations committee and others in subsequent years to be sure that there is fiscal responsibility.”
Each override amount, which would permanently raise the tax levy on July 1, is an individual question that would need over 50% of the vote to pass. If both override amounts are approved, the larger one becomes the new levy.
According to the Division of Labor Services calculator, an $11 million override would raise the property taxes of a home valued at $450,000 by a total of $1,904. A $9 million override would increase taxes of the same home by $1,557. These numbers does not reflect any changes in assessed value of the property, as well as the 2.5% increase allowed annually by law. The average home value in South Hadley is $417,106.
Fiscal year 2027 budget
Besides the override discussion, much of the meeting centered around the budget hearing for a non-override budget. Wong’s presentation showed next year will decrease staffing in nearly every town department. At least one full-time position in health, planning, building and finance departments will go to part-time, and departments like public works, human services and police will lose one to two staff each.
“I want to really emphasize that significant cuts have been made in every single department,” Wong said. “We have a lot of departments that are really stressed, including myself. I’ve actually asked you to basically ask the state and eliminate my position, which means that other people are going to have to do my work.”
In summer 2026, the Massachusetts Department of Labor Standards will audit South Hadley’s finances and government structure, then recommend ways to bolster efficiency and save money.
In addition to positions, decertification of the South Hadley Public Libraries could happen if the town does not provide a minimum of $856,802. Libraries without certification loose access to state funding and interlibrary loans. Wong said there is a waiver to extend certification a year if the library funding is under by 10% of the requirement, which would also lower the state-required amount of funding required for libraries in fiscal year 2028.
Cuts to the library budget were less than predicted after seeing unexpected savings in health insurance. The Hampshire County Group Insurance Trust added deductibles to their HMO and PPO plans of $250 and $500, limiting next year’s increase in benefits to 12.5% rather than 16% or 20%.
“I have never in my recent adult life seen deductibles in plans at those amounts,” resident Christine Phillips said. “I work for a very generous organization, and ours are $1,750, and $3,500, and the average are $2,000 and $4,000; $3,000 and $6,000; and $5,000 and $10,000.”
With health insurance costs expected to continue creeping up, speakers asked Wong about ways to offset expenses with new revenue streams in the near future. The Select Board gave the nod to the draft policy for a payment in lieu of taxes program with nonprofits, which Wong estimates will bring in around $700,000. New developments could happen, but Wong remained doubtful because the community is fairly built out.
“The real solutions are fixing the health care systems, advocating for state aid and being competitive economically,” Wong said.
The Select Board will vote on the fiscal year 2027 operating budget on March 17, which will go to Town Meeting in May if an override does not pass at the April 14 election.